• The new NBE directive cited as "Foreign Exchange Exposure Limits of Banks Directive No. SBB/96/2025" has entered into force starting today November, 10th , 2025.
• A key change links a bank’s maximum foreign exchange exposure to its core capital, enhancing financial stability by aligning risk capacity with a bank’s actual financial strength.
• This reform transitions from a static paid-up capital requirement to a dynamic system where capital must align with the risks a bank undertakes.
• For the first time, banks must calculate separate capital charges for market risk and operational risk, moving beyond the traditional focus on credit risk.
  
  
  

• African Export-Import Bank (Afreximbank) is set to pioneer Africa’s use of the Chinese renminbi (RMB) in project financing after becoming a direct participant in China’s Cross-Border Interbank Payment System (CIPS)
• With direct access to CIPS since June 2025, Afreximbank gains the ability to finance projects across Africa using RMB, streamlining transaction processes and cutting costs and currency exchange risks associated with cross-border trade and project finance.
• Afreximbank’s successful issuance of Panda bonds on China’s capital market has diversified its funding

• They are examining replacement or conversion options, including electric or natural gas-powered alternatives, but the plan still requires final approval.
• Replacing vehicles older than five years is suspected to be one of the options under consideration
• potential role of Compressed Natural Gas (CNG) is also considered 
• the number of EVs in Ethiopia could reach 1.15 million by 2040

• The move follows BEAKA’s import of 150 Shacman trucks, marking the first phase ahead of local assembly. Under the plan, the company aims to assemble 1,500 vehicles annually
• The project aligns with government measures introduced in October, which exempt fully gas-powered vehicles from customs duties and restricts petrol and diesel imports to pre-cleared consignments

• The new directive, officially enforced in March this year, requires all diesel and gasoline vehicles to undergo emissions testing and mandates either the installation of approved emission-reduction devices or proof of emission compliance through an official certificate
• Officially commissioned researches show that about 70% of the city’s fuel-based emissions originate from taxis alone
• Those who fall short of the new standards will be given two options. They will have to install a certified emission-reducing device or undertake a full engine overhaul to lower emissions.
• TBK Trading Plc has begun selling a device, GreenTech, imported from Taiwan’s Molotech Group.
• The company claims the device can reduce exhaust emissions by up to 97% and cut fuel consumption by 30%. It is installed inside the engine, boasts a 10-year lifespan, and costs between 15,000 Br and 50,000 Br, depending on the size of the fuel tank. 

• The Central Bank posted a bold buying rate of 152.576 Br on October 23, almost 8.3 Br higher than ZamZam Bank’s 142.65 Br low.
• On paper, a uniform two percent spread governs the market. In practice, a wide corridor, from 142.65 to 152.58 on the buy side, and from 145.51 to 153.81 Br on the sell side, betrays different appetites for risk and liquidity.
• Despite the range, averages remained stable at about 147.8 Br for buying and 150.7 Br for selling
• Without a fresh infusion of dollars, the rate could drift to 153 Br and 155 Br in the coming months

• The Ethiopian Capital Market Authority (ECMA) has introduced a new draft directive 
• The new guideline focuses on improving transparency and regulatory standards for Collective Investment Schemes (CIS), including Money Market Funds, Mutual Funds, and Real Estate Investment Funds.
• Under the directive, investment schemes must be registered as joint stock companies, private limited companies, limited partnerships, or investment companies recognized by ECMA
• A key feature of the policy is its emphasis on comprehensive information disclosure; Public funds offering units to investors are required to prepare a general promotional document approved by ECMA, which must provide clear, accurate details on the fund’s investment policy, capital structure, issued securities, dividend distribution policies, and methods for determining distributable profits.

• The standards focus on sustainability, climate-related disclosures, and governance, offering investors consistent and comparable information on environmental risks and opportunities.
• Financial institutions, including banks, insurers, and major state-owned enterprises, are preparing to integrate sustainability disclosures into their reporting. 

• The Ministry of Finance has introduced a new directive that extends value added tax (VAT) registration to professional service providers with annual turnover below two million birr
• For the first time, professionals outside the Category “B” classification under the income tax law must register regardless of their turnover.
• Entities covered by the directive must complete registration within 30 days of its entry into force.

• The 392-km Awash–Kombolcha–Hara Gebeya line was designed to connect central Ethiopia with the north,
• while the 268-km Hara Gebeya–Mekele line was intended to extend the network into Tigray.
• Both projects were financed largely through external loans

• A 2025 report by the European Commission’s Joint Research Centre ranks the corridor among eleven African routes considered most attractive for infrastructure funding under Global Gateway, the EU’s 300 billion euro programme to reinforce global supply chains.
• The proposed corridor would lower costs, ease congestion and provide alternative outlets through Berbera in Somaliland and Dar es Salaam in Tanzania

• Withdrawals of any authorized amount remained free, but mobile money transfers that were once complimentary began incurring fees.
• Digital Banking account-to-account transfers now carry fees ranging from 3 birr for transactions up to 10,000 birr to 20 birr for transfers exceeding 300,000 birr.
• Mobile transfers to Telebirr and other wallets also attract charges, with a maximum fee of 15 birr for transfers above 10,000 birr, while internet banking to other banks largely remained unchanged.

• The losses were caused by 197 vehicle collisions, of which 53 occurred on ring roads and 144 outside ring roads
• The city has expanded its road network rapidly in the past two decades, with more than 2,700 kilometers of asphalt and cobblestone roads.
• Heavy traffic volumes, estimated at over 500,000 registered vehicles in Addis Ababa alone, continue to put pressure on infrastructure.

• Established in 2023 with more than 500 million birr in capital, Suweys Motors started with 30 assembled cars and has since become a leading player in the Somali Region’s automotive industry
• Suweys Motors manages both CKD and SKD operations, assembling models including Jetour, Suzuki Desire, Hyundai, Toyota, and TATA
• Its facility can produce up to 10 vehicles a day, with capacity to assemble eight Jetour cars from start to finish daily

• ESLSE, which currently operates in vessel operations, inland transport, and freight forwarding, is exploring the addition of a new division focused on rail transport.
• ESL aims to create a seamless, multi-modal network that enhances efficiency, lowers costs, and strengthens supply chain resilience
• ESL plans to operate on the railway line connecting Ethiopia and Djibouti
• ESL invested 750 million birr to acquire 100 Sinotruk trucks. This investment is part of a broader plan to grow its truck fleet to 1,000 vehicles within two years

The Chinese car manufacturer BYD has officially entered the Ethiopian market with the introduction of five battery electric vehicle (BEV) models, including the compact hatchback Seagull and the Tang SUV, in collaboration with its Ethiopian distributor, MOENCO, one of the largest automotive distributors and retailers in the country, representing over 20 brands, including Toyota.

• Earlier this year, the cap was increased 14% to 18% due to declining inflation, tight monetary conditions, and improved supply-side factors.
• Prior to the cap, annual credit growth in the banking sector averaged over 25%, with some major banks exceeding 30%.
• As part of the reforms, the government will introduce market-oriented Treasury bonds to replace the current system, which requires banks to purchase bonds at a fixed interest rate of 9%. This directive, implemented in November 2022 will be repealed by June 2025.

• Officials want to see ESX host at least 90 initial public offerings (IPOs) in the coming years. 
• Shares, equity, and debt securities will be traded on the platform. Banks, state-owned enterprises (SOEs) and other eligible firms are eligible to list.
• Wegagen Bank has become among the first to offer equity on ESX
• Ethio telecom’s 10 percent stake offering is slated to go live on ESX, while at least four other SOEs under the Ethiopian Investment Holdings (EIH) are also expected to list.
• The banking industry is likely to be the first to brave the new market. An estimated 400,000 shareholders hold equity in the country’s commercial banks, and they will now be able to sell and buy shares on ESX at any time.
• Companies also will be able to issue debt securities, which so far have been limited to treasury bonds issued by the National Bank of Ethiopia (NBE).

- The service, set to begin on February 24, 2025, is also being rolled out in Morocco, Egypt, Tanzania, Algeria, and South Africa.

- The company was established in 2010 by Alibaba and expanded its business-to-consumer services to Ethiopia in August 2024. It sells over 200 million products on its platform worldwide.

- However, questions remain about the payment settlement mechanism, as regulators at the National Bank of Ethiopia (NBE) say key details are still in the air. While there has been talk of a currency swap agreement between Ethiopia and China, it has yet to be finalized.

- Featuring three charging modalities, the station can simultaneously charge up to 32 electric vehicles, ensuring convenience and efficiency for drivers

- The chargers are designed for efficiency, capable of replenishing batteries at a rate equivalent to traveling 1 km per second, depending on the vehicle’s capabilities.